Estimating New Construction Cost, Per Square Foot
Ask a builder about the new construction cost per square foot of a recently constructed property and he would tell you how it depends on many things. Well, the cost per square foot is arrived at by dividing the total cost of construction by the total living surface area of the constructed building. This method of calculation excludes the cost of many important components which make the living space worth living. In this sense, this method of measurement is incomplete.
Apart from this, there are a lot of other expenses which are not accounted here. But they have an important influence on the overall new construction cost per square foot. These construction costs are local building permits, water hook up fees and many more. Mechanic fee will vary according to the mode they are charged. A flat fee might cost you more if you have chosen to do less expensive plumbing than charge-per-installation. The choice of structure will determine the cost as well. A multi-level house requires less excavation and foundation. Therefore, it requires a lot of less money. While a house of similar surface area, if built on the model of a ranch house, would require a lot more money for foundation. Again, the design would depend on the region it is built in. A home built in a flood zone has to be nine feet above the sea level. So raising the house on piling would mean a new expense. Likewise, a house planned in Texas would incur extra expenses because of room cooling systems because in Texas climate is more humid than in other places. This implies that there would be different per square foot rates for different regions but having similar living surface area. Similarly, custom built houses, because of a personalized design and setting, would cost more in terms of per square foot. This kind of construction essentially includes a heavy architectural fees and special costs. Copper wiring has become very expensive because of irregular supply of raw material due to incessant strikes in copper mines across the country. Also there is a lot of pressure because of international trend of urban housing. You need to keep a separate allowance for electrification and wiring of the house. This is generally not included while calculating cost in terms of per square foot, thereby giving a false figure which is lower than the actual figure. Therefore, it is important that apart from evaluating the catalog of per square foot rates, a client should also invest time in finding out details about the additional costs that he is going to incur. It will help him to get a realistic cost per square foot estimate. Also check the regional variation in construction costs. This is the only realistic way of arriving at a new construction cost per square foot. |
